i can't wait until it's done with. because despite the news we've seen the and the reasons for markets trading down and a market that's long in the tooth, i think when we see this number, we can probably go down. >> you said it's a monkey on the market's back. >> it is, in a sense. >> and it's keeping those people who are the nay sayers to the rally, you know, basically it's keeping their argument aleiv, that this market is topping. >> that's another interesting thing. now you're seeing a lot of the naysayers throwing in the towel, turning bullish. we saw that a week or two ago with some of the longer term bears. and that also is indicative of more of an intermediate top, where easy money has already come out. i think we've got some headwinds in terms of how to make a market. >> this is an iou for a cup of coffee. i hate losing a bet. >> terry, good to see you. >> light volume. does that matter to you? i'm asking the maria bartiromo question? >> light volume has been a concern for us since the rally began.

we really haven't had the confirmation that we've had in the historic rallies, where you've seen confirmation with volume on top of stronger highs. volume is a big, big consideration here. >> what do you do with this market right now? >> me, i'm hopefully getting out of the market, looking the to reposition myself. if it continues to go higher, i can always buy back. as i said once before, you can't always sell. ibm's facing out. i think we're long in the tooth. i think there are a lot of things overhanging the market that we've overlooked, and we would probably suggest a little bit of a downside. >> and the things that the bulls keep saying, and i get that, you're a trader and you know supply/demand, all that. the things the bulls keep saying, as long as the fed's on my side, i'm going to stay with the market. >> and that's something we'll see evolving and changing. i think the fed has already been up-front enough to say, you can see what they're doing, as they're doing it. but i think you're going to see some change in their psychological into the second half of this year, for sure.

>> we'll see what happens. thanks, terry. always good to see you. thanks for stopping by. the dow will finish in all-time high territory. the ninth or tenth time in this rally for this year. the s&p, still very close, doesn't look like they'll do it. i'm hanging on to this coffee iou, as we head into the second hour of the "closing bell." stay tuned. and there is the gavel. it is 4:00 p.m. on wall street. welcome to the "closing bell." history in the making again for the dow jones industrial average. si i'm sue herrera in for maria bartiromo. bill griffeth is at the starbucks cafe, cashing in on the iou. he'll join me in a moment. the dow closing in another record. the s&p 500, so darn close. right now, not there, but we'll see whether they settle it out

there. here's how we're finishing the day on wall street. the dow does finish in record territory. right now up 111.20 points. the nasdaq up 17 points on the trading session. and the s&p 500, it had a good performance, up 12 points on the trading session. let's get to today's market action. >> with us this hour, we've got michael yoshikami, tim leetch from u.s. bank wealth management, margie patel, and our own rick santelli, who manages himself, pretty well. michael yoshikami, here we are, all-time high for the dow jones industrial average, and the s&p still refuses to hit one here. what's going on with this market? >> market's going up, because all the money's flying out of places like cyprus and greece and spain and italy and europe. i think it's a flow issue at this point. obviously, yes, the fed is obviously juicing the market. but where else are you going to invest your money in a way that's safe, that you're not

going to be making zero? essentially, the feds have set up the market to a point where you really have to go into equities at this point. and considering what's happening on a global basis, it's probably the safest place in the world, right now, as we speak, to invest. >> it probably is, margie, but at the same time, that s&p keeps bumping up against that record, cannot push through it on a closing basis, which the counterargument to what michael just put forward is the fact that the market is topping, regardless of the flows that are coming in. what do you think? >> well, i think it's true that flows have been pretty light. and i think a lot of the money that's gone into the equity markets has come not from bonds, but from cash reserves. i think that tendency will continue. i think people need to see just a little bit more affirmation of the positive trends. and i think you'll see something like a tidal wave of money out of the equity markets and take us a lot higher. >> and in fact, margie, you think these long rates that have been low for so long, they will remain low longer than people

expect or fear. why? >> yes. i think so. one, because inflation has been very well behaved. energy prices have been pretty well behaved. i think that will continue. wages, also. and i do think that we will see money coming into this economy. that will help to keep these trends going. and i think that will be a real gift. and i think cyprus was probably a gift to the u.s. treasury market, to help keep rates very low and attract save investors. >> and we welcome now tim leetch. cyprus to you is so yesterday. you're watching slovenia, right? >> that's right, bill. >> slovenia? >> slovenia. we're trying to look over the horizon, as opposed to yesterday. and when we see the banking pressure on countries like cyprus, we think about what's next. and what does this really mean for the stability of the banking structure in europe as a whole.

and we're concerned, frankly. we haven't seen the structural repairment that the europeans have had to step up to do. and certainly, cyprus hasn't convinced anyone that the european leadership has their act together. >> so, yesterday, the sell-off was the fear, and this was inflamed by the dutch finance minister, that maybe the cyprus bailout was a template for future bailouts of other countries, should they need that. is that what you're thinking as far as slovenia goes? >> well, to a certain extent, it could be. and that's a real problem. because what the european deal essentially says is that if you're a large depositor, we want you to move out of deposits and into, perhaps, bonds. >> right. >> but that's the last thing that european banks really need, so to have a run on themselves. and so, i think that it's really potentially a policy that's contra purpose to what they're trying to achieve. >> you know, michael, that goes to your on the, though, that, basically, our market looks the

healthiest in the globe. if that is, indeed, the case. and you know, tim is right, that we may see more spillover effect from there, where would you be putting new cash in the market, we closed on the dow jones industrial average and the s&p? >> you've got to be conservative. you have to be conservative and invest in dividend payers and not get too frothy. the market right now -- >> does it worry you that everyone is saying dividend payers item. >> no, it doesn't worry me. because that's the right thing to do, in my estimation. i think, for once, everyone's saying the right thing. if you buy a market that's at 14.5, you're buying at a very, very high point. and you have to be very, very careful. even though valuations are reasonable, they're not cheap. so you have to have something that has some defense associated with it. and that's going to be assets that pay you in income stream. >> rick santelli, what do you make of the resilience of the this equity market? yesterday, we were all saying, oh, maybe, maybe this is the beginning with the sell-off of the long-awaited correction. and now, suddenly, here we are in all-time high territory for

the dow again and the s&p knocking on the door. >> you know, there's no surprise in any of that to me. you know, the fed is, indeed, made it so that the only good game of dice is in one alley, and they have everybody and all roads leading to that one alley. however, once day get everybody in, is it going to be like that custom when somebody saves your life, they're responsible for it? see, this is the issue. our female guest said something rather relevant. and that is, inflations contain now. in '07, well, subprime was contained, until it wasn't. and i think that what bothers me is, at the point when things start to heal two, three years down the road globally, inflation probably won't be contained. velocity will pick up, and that's when the fed's going to have to decide and exit. it's going to be messy by the very nature of when the white flag goes up the poll, a lot of forces are going to awaken that we haven't had to deal with since before '08. >> rick is absolutely right

about that. once the fed is not a buyer, and god forbid, if they're a seller into the market, you're going to see something that we've never really seen in our lifetime. i think rick's absolutely correct. you can't be complacent about this interest rate situation. >> let me turn to our female guest. margie, what's your version of how you think the fed will start to rein it in? there's a belief that maybe they'll just hang on to those bonds and let them mature. is that how it should go, or what do you think they should do? >> i think market forces will determine where interest rates will go. i don't think the fed will be able to steer the boat and steer through to the kind of rate level they want. but i think the dollar is so attractive, fundamentally, our banking system, the wealth in this country, that i think that will help to keep rates low naturally, because it

won't be able to undo, unless they cause market disruption. and that's what rick's always talking about. the market disruption when you exit from this fed strategy, we really don't know what to

expect. that's why you have to be very, very careful and watch what's happening. >> a couple seconds left. let's make this meeting full to investors. michael, i know you're buying dividend payers. tim leach, what are you buying right now? >> we've shifted, bill, from long only to a mix of long managers and long short managers. we think that's the right overall play right now. and with respect to stocks, we're primarily within cyclical oriented stocks, industrials, technology, companies that can really sell well in the emerging markets. >> meat and potato kind of stuff. >> margie, what are you buying right now? >> i think anything to do with the shale gas revolution will be long-term value. they're actually creating wealth out of the ground. and i think pharmas will be do very well. big pharma, as well as specialty, because they have intellectual cap, they're creating new drugs, and i think they'll add wealth to the shareholder in the next year or two. >> very good. thank you all. nice to see you. appreciate it very much.

>> thank you. we have some breaking news right now on wells fargo. what's up? >> bill, wells fargo is confirming that their website has apparently been attacked by hackers in what's commonly known as a denial of service attack. wells says that the vast majority of their customers have not been affected and the customer information there, it's safe. but that many stomn fact, are having difficulty accessing the site as a result of this presumptive attack on wells fargo. they say the disruption is intermittent and they're advising customers who want to get into their wells accounts to try logging in again, ie, repeatedly, and hope that you can get in that way. but, again, confirming that their website, if you've been having trouble getting in, they've been the victim of a denial of service hack attack. >> hear it more and more these days from the big banks. so far, it's only been a nuisance, but we hope it only stays a nuisance at that point. thank you, tyler, very much. so back to the markets, the

major averages seem green pretty much across the board today. josh lipton runs through the day's winners and losers today. josh? >> notable leaders and laggards in today's session, bill. let's start with some names in the green. netflix, your best performer in the s&p 500 today. analysts at pacific crest raise their price target to 225. the stock up some 100% this year. another winner, monsanto, who struck a licensing rival dupont, marriott international, avon, and eog also gaining ground today. laggards, gap, apollo group, best buy, st. jude, and first solar also moving lower. sue, back to you. >> josh, thank you. more on the market's mojo on a jam-packed edition of "closing bell." so close for a new high on the s&p 500. >> i've got my iou right here. >> hopefully they'll take it. if not, you know where to find me. a run on the banks perhaps in

cyprus. is that something that could derail the rally? michelle caruso-cabrera is live on the troubled island nation for us. and it says that new york city real estate is back. i don't think it ever went anywhere. it's barely ever left. we'll speak with one of the biggest brokers in the big apple. join us in the next half hour to talk about staying power of this recovery. also ahead, wait until you hear which company warren buffett is on his way to becoming a top shareholder of. you're watching cnbc, we are first in business worldwide.

another big day for the bulls today. the dow jones industrial average closing at record territory once again. the s&p 500, just shy of that. and for many, like our next guest, he believes that, basically, there is more room to run. the momentum is not going away. >> yeah, he is cnbc contributor michael far at far miller in washington, and he's taking on our friend, peter elides, who says his cycle work says we're in an area where we should be seeing a long-term peak in this market. let's start with our bull michael, you first. how much higher can we go? >> you need to be nervous when i'm the bull, guys. you know that, right? >> what do you mean? you're our go-to bull right now. >> i'm always the cautiously

optimistic guy. but, look, when you don't fight the fed and you don't fight the tape. so this thing keeps moving higher, in spite of all rationale and reason. and i don't think that you trade too much, a market like this. i think you have to be defensive. but this one's going higher. get out of the way, guys. i mean, this is not the year to sell in may and go away. >> those are challenging words for peter eeelides. >> let's try to take three giant steps back from the excitemen o. and i agree, it is exciting. and i agree with our bull that, indeed, the kind of momentum that we see does not go away in a day or two or a week or two. but that -- if we take three giant steps back and see the overall picture for the last decade or 13 years, going back to 2000, i wish i had a chart here to show you, for the high made in 2000 on the s&p, the high made in 2007 on the s&p,

that's the all-time high, and now we're just kind of a chipmunk here neat that 19 or that 2007 high. but if you take a long step back and look what happens as we approach those levels, we've got dividend yields on the s&p 500 of around 2%. right now, the dividend yield on the s&p is 2.17%. if i showed you a chart going back 150 years, and i have one of those, that showsouhat happens over the next ten years, once the broad-based market index reaches a dividend yield of 2% or lower, and believe me, those are very rare readings, you will see that the greatest gain annualized on the next decade is about 3% or 4%. that's the greatest . >> and peter, you wouldn't know, unless you've got a monitor there in front of it, but we've got it. what is that, a 20-year chart of the s&p right now. and we see those big peaks that hit in 2000 and 2007 and now

we're back to that again. you don't think we're going appreciably higher from that point, do you? >> i do not. >> you think this is yet another peak. how much of a decline do you see after that, at this point? >> this is a little premature to say that, bill, but i would not be surprised if over the next three to four years, we see that the lows of 2009 challenged. i mean, this has been a wonderful rally for everyone participating in it, but let's face it, a lot of it has been generated by qualitative easing. and once that backs away, you've got nothing left to support the market. >> yeah, you know, michael, that's the fed argument that everybody down here, we were debating all hour, actually. is, you know, when the fed decides to pull in the reins a little bit, there might not be anything beneath this market. what do you think? >> i think that, certainly, the fed has fueled a lot of this. and if you look at a shorter term chart and you overlay the periods of quantitative easing going back to 2008, there is an

absolute correlation with the upward moves in the market for each period of quantitative easing and a trade-off when it stops. but the fed's got the punch bowl there. i really, strongly disagree with peter and his notion that we might go back to the 2009 lows. book values are higher. balance sheets are stronger. earnings are stronger. we've got a 14 times multiple kind of a market right now. and, look, we're over 500 trading days without a 10% correction. that doesn't make any sense. these things worry me, too. but i think a lot of guys have gone broke, you know, calling the tops to markets that continue to surge on through. so while i think as an investor, you have to stay cautious, make sure you own really good things and don't swing for the fences, i don't think you can time and get out of a market like this. >> peter? >> i think stronger than they were, and at the 2007 high, try to think back to that peak in 2007. boy, did they -- >> they're stronger than they were at the 2000 -- yes, i think

they're stronger fundamental than the 2007 high, and certainly stronger fundamentally than the 2009 low. >> but i'm not arguing about the 2009 low. >> i thought you said we could retrace to the 2009 low, no? >> i believe we can, but what i'm asking you is, did you say, at the 2007 high in october, you thought that we could go down to 6,000 in the dow? >> oh, absolutely not. oh, no! no, i didn't. >> thank you! >> i really, absolutely didn't. >> thank you. >> i thought we could have a pretty good correction, but we didn't. >> i many point exactly. >> yeah. and in 2007, i did on "squawk box," suggest at the beginning of 2007, i thought we were ready to go in recession, which would have called for a pullback. i don't want trade in and out of these things, but i think that's too much of a correction to call for. and i think that the fundamentals have improved substantially. it's not to say that i'm not worried, peter, i'm always worried. >> you've got two very smart guys right here that have fundamental disagreement on where this market goes from here. >> and a lot of evidence on both

sides. >> exactly. thank you, guys. see you later. appreciate it very much. >> a pleasure. >> over here. does this rally mean, today, that we're out of the woods when it comes to the mess. cyprus? well, we get back to that. maybe not so fast. something could still happen there when the banks right now are scheduled to reopen and could rattle things here in the united states. michelle caruso-cabrera will be joining us live with details on that. >> and orbitz sales have doubled here at home. how they plan to keep the gravity-defying run-up going up and a little bit later, is the housing recovery on solid ground? one of the most powerful real estate broker in new york city gives us her two cents in a few minutes. stick around. bill and i are back in a moment. ♪

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banking crisis, what banking crisis? stocks have been soaring here again today in the united states. >> so does that mean we're out of the woods on the cyprus situation, or could a bank run there still happen and rattle the world markets? let's go live to nicosia, where michelle caruso-cabrera is standing by with the latest developments. michelle, when do we know, are the banks scheduled to reopen at this point? >> reporter: right now they're scheduled to reopen on thursday. we got that announcement late last night and then the head of the central bank and the finance minister of the country made a presentation to reporters this afternoon, confident that that will happen on thursday. to give you guys a sense of just how tense the situation is here,

because of the financial crisis, take a look at this video that we shot over at the central bank today. armed officers from a special police unit are there as the employees leave the bank to make sure they're not attacked. there were protests at the central bank today by bank employees who are fearful of losing their jobs. employees of the two banks that are going to be dramatically downsized or liquidated, remember, that's what this country agreed to do in order to get 10 billion euros s out of their european partners. in the meantime, the banks have been closed for ten days. when they reopen on thursday, it will be a breath of relief for this country, because they are cash strapped and it is becoming extremely difficult to do any business. we know that there are now armored vehicles moving throughout the city in the night and tomorrow during the day to make sure that the banks are well stocked for what's anticipated to be large bank runs. it's also anticipated that they're going to have some kind of controls in place to limit the number of, the amount of withdrawals that you're allowed to make and the amount of the

withdrawals. because they think there's going to be a large amount of capital flight and they're trying to slow that down and trying to calm people down. we're going to have to see what it looks like on thursday. it could be very messy, bill and sue, or if they are very good at calming down the public and convincing them that the remaining banking system is strong, maybe we won't see lines. but i doubt it. >> yeah, that's going to be a tough sale. that's for sure. michelle, thank you. great job, as always. >> well, while the market rallies as things get sorted out in cyprus, one of our next guests says that the situation is dangerous and more situations like cyprus could be just around the corner and the markets won't take it quite as well with a bigger nation. >> that from anthem blanchard, but another market pro, steven friedman of ubs says contagion is not a concern right now. anthem, you first. make the case for a domino effect, if you will. and what could be next? >> sure. well, ultimately we have a case here where depositors have been put at an extreme amount of risk. you have a haircut and are talking 40% here off of any

account over 100,000 euros. that covers a lot of small businesses, covers, obviously, the heartbeat of the economy, wealthy individuals. so, i think you can see mass n contagion here in portugal, spain, italy. you have other countries in the euro region like slovakia, malta, and i think what it's also showing us here is the difference between someone's right in a bank deposit liability versus actual real property. so i think there's all kinds of credit risks and exchange risks that are being highlighted here. >> but, you know, steven, our markets from proved fairly resilient. we have seen some triple-digit losses when we see headlines out of cyprus. but, certainly, the market hasn't plummeted. that seems the to many people down here, anyway, to make the case that we're more the safe haven market. >> yeah, i think, clearly, the potential for contagion out of the cyprus situation to the u.s., but i think more generally to most other markets is

relatively limited at this stage. it was, clearly, a very messy ten days that we've gone through. but the fact that there is a deal in place and this deal is much better than the original proposal that was first surfaced, i think it really is quite positive. and keep in mind that there are a number of features of the cyprus situation that are quite unique and that don't necessarily generalize to other countries in the periphery in the euro zone. the size of its banking sector, the deposits being four times the size of the economy, the fact that there were virtually no bond holders at banks that could be built in, and therefore the depositors came in. those are things that really are very different than other countries. >> yeah, what about that, anthem? i mean, the cypriot banks, weren't they a special situation? they were basically insolvent. you had to get the money from somewhere. and you had to go to the depositors, in this case, to make up the difference of what they were trying to raise to get the bailout from the imf. >> well, i simply disagree with that. i think you have a lot of

derivatives, you have a lot of market fantasy going on in all of these various eu countries. i would agree with the other guest in the sense that i don't think that the contagion is can going to happen to the u.s., simply because you have a monetary and fiscal union, so you have the central government and the central bank as one. so that's very different from the euro zone. i think that's that's one of the crux of the issues. i think you're also going to see some issues not only from very large depositors holders, but also from very small depositors holders as well, wants to take cash out and worry about their t cans being frozen. >> but the big countries, the germanys, the france, the italy, the spains, it's not the same situation as it is in cyprus. the market is worried that the next shoe to drop is going to be one of those larger countries. but you're not making that argument. those countries do not have the same banking issue that cyprus has? >> well, i certainly wouldn't lump germany, france, and italy into the same boat by any means. i think that there are very

different countries, talking about a large savings country and a deficit country, deficit countries with italy and france. i think, ultimately, yes, you will see the contagion. i think that is the risk of fractional reserve banking in general. and i think, ultimately, having a lot of asset deterioration in the form of unperforming loans. and i think, ultimately, this is the importance of seeing real money, you know, physical gold and silver representing real money, real assets. the difference between an asset and a liability from an accounting and a legal standpoint, i think, is really being brought to the limelight here. and i think it's only going to continue to do so. >> steven, isn't there a danger, and this is what has worried people about this potential domino effect, that if regulators and the ecb can go after what has been sacredtory to this point, namely depositors, even uninsured depositors, maybe you've in and out set a precedent that it could happen someplace else, where you thought it could never happen at another time. >> i think, as you said, the key

word here is uninsured depositors. relative to the original deal that was being discussed, what was achieved on monday, essentially, protects depositors under 100,000 euros. that's the coverage for deposit insurance in the euro zone. >> but even the uninsured depositors, even those people who had deposited money in a bank, they're not a bond holder. they're just putting money in a bank for safekeeping at that point. they were liable in this case, or they were vulnerable, i should say, is a better term for that. and that could happen elsewhere, couldn't it? >> i think the precedent that this is setting, i think, again, if you transpose the cyprus situation on to other countries in the periphery, it's the general principle of bailing in creditors. so, you know, if cyprus, again, there were no creditors to speak of, no bondholders that could be bailed in. if you go to another country, it does indicate that euro zone leaders are very keen on involving the private sector, involving the creditors. but i think that in a more, you know, in a normal country, in

the periphery, different than cyprus, you are more likely to have that type of discussion, rather than trying to go after the depositor. that's not without risks either. i think it means there is some potential for contagion, and mind you, not immediately, but further down the road if and when another country gets in trouble. at that point, the senior creditors are going to be much more on their toes and much more likely to withdraw funds earlier on in the process. >> got it. you even have anthem nodding on that one. thank you both. good to see you. thank you both for joining us. here's something dolly lens has never heard before. hello, dolly. real estate broker to new york city's rich and famous. dolly lens joins us next. she has $7 billion in deals under her belt. we do have a housing recovery realty check next on a market that never really went anywhere, manhattan. coming up. also ahead, one of the richest man on the planet has made another out of this world deal that only he could pull off. details coming up later on the "closing bell." carfirmation.

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that housing recovery looking more real. details from our diana olick right now. diana? >> that's right, bill. strong numbers on home prices and okay numbers on sales of newly built homes. we'll go first to the builders.

take a look. new home sales fell 4.6% in february, month to month, after a big jump in january. this was revised down slightly. now, these numbers tend to be volatile, month to month. if you go by a three-month average, sales were up slightly in the midwest and a lot in the north and they haven't moved much in the northeast. the west is where you're seeing really low supplies of existing homes. new builds are more expensive than existing homes. speaking of prices, the latest read on the case-shiller index for january, it shows prices up just over 8% year over year in the nation's top 20 markets. this is the piggest annual increase since 2006, when the housing bubble burst. phoenix, las vegas, and san francisco are seeing the big gains thanks to very low supply. and new york, finally saw prices gain after seeing 28 months of negative annual returns. and i'm talking about the new york metro area, not manhattan, which is its own animal. and sue, i know we're going to

talk about that now. >> indeed, we are. stay with us, diana, we're going to drill down into what is exactly going on in new york's very unique real estate market. >> and joining us, dolly lens, and our own welt editor, robert frank, who follows the wheeling and dealing of the rich, who is also here. dolly, we were joking earlier. we said new york real estate is back. it never left, did it? >> no, it never really left. absorption was off for a bit. pricing, though, never left. pricing held really high and continues to hold and doing even better. it's amazing. >> because demand is that strong or supply is that constrained right now? >> it's a mix, but it's primarily demand. because we have the unique position of having incredible demand from all over the world. we're not a local market. so, and that tells our story. >> and that leads us to robert. because, robert, this is one of your many beats, the wealth beat. and how much of the demand is domestic and how much, do you think, in terms of the big

sales, has been from foreign buyers? >> yeah, i mean, my understanding is that foreign buyers have become a big presence in new york, particularly at the very high end with a lot of russians. but dolly, i wonder, the big discussion in manhattan is about inventory, the lack of very high-quality trophy properties. when you take into account, dolly, the whisper listings, you know, those listings that aren't official but are on the market, what does inventory really look like at the top end? >> i mean, we're short on inventory versus the norm, but we're not that short. with the whisper listings, we're okay. if you really are serious and you have $30 million or $40 million to buy a property, we can find you one. >> that's good to know. >> give us an example -- what's a whisper listing? >> okay. you have a seller in a fancy fifth avenue co-op, an entire floor who says, you know what, if you got me $50 million, i would sell my apartment. show it to very qualified people only, let me know in advance, and see if we can do a deal, quietly. he doesn't want to see it on a multiple listings service. he doesn't want to see it

anywhere posted, advertised. >> so where are you going to go to find those buyers? are you going to asia -- >> you have to go to dolly. that's where you have to go. >> you go to dolly, we know that. >> what about the foreign buyers, dolly? i want to know if the same thing is going to happen in manhattan that people are worried about in miami. we just came back from south beach where you see condos going up all over the place with all this foreign money coming in, the same money you see going into manhattan. and a lot of people are concerned if rents start to come down or something changes internationally that these buyers will be quick to pull out and they'll have a glut of properties on the market again. is manhattan like miami? >> that's a big risk in miami, for sure. i saw the cranes as well and toured all the buildings. i think in new york, it's a little bit less of a concern, but there are pockets that are already slightly saturated. but it is a tricky balance. >> to bill's question a few moments ago, when you have the trophy properties, where are you going to get those buyers? the russians have their issues in cyprus right now, so i don't know whether they are as big a

factor as china or -- >> it's generally europeans. because these are co-ops, so we wouldn't be welcoming, necessarily, all the foreign buyers. so it's going to be someone in california, it's going to be someone in paris. it's going to be somebody in london. we go to london for a lot. you'd be surprised, how many people in london have new york residences as well. >> the impact wall street has had on new york real estate. i mean, obviously, this is the financial capital. we still like to think of it as such. that took a hit, though, didn't it? >> it took a hit. but, look, with the dow where it is, right wrve feels wealthier. whether or not they actually are, they feel that way. and when they feel wealthier, that irrational exuberance passes on. >> but i'm talking about the jobs that were lost -- >> no, the jobs were a problem. >> and the impact that had on the real estate problem here. >> employment's a problem, but that's not a problem in the $30, $40, $50 million stratosphere. >> take us to that level. one of the debates we had earlier in the first hour, i think it was the first hour of

"closing bell," was the availability of credit and the availability of loans. now, people in other parts of the country are going to find this crazy, but if you have a couple million dollars to spend in manhattan, you usually don't get that much space these days. so -- and you usually have a mortgage. how easy is it for people to get a mortgage these days? >> it's a little bit easier now than it has been, let's say, last quarter. but not that much easier. we still have to go through a lot of hoops to get someone a mortgage, even where they're super qualified. and then we have to keep that mortgage going until the closing day. we've actually had mortgages pulled a week before closing for some doc reason, you know, document wasn't signed, they didn't get something from the managing agent. all kinds of arbitrary reasons. it's really a process of keeping them in that game until the very e end. >> and are appraisals coming in -- >> no, they're not. appraisals are still a problem, but better. and in manhattan, particularly better. >> very interesting. >> it's a one-of-a-kind market

and she's a one-of-a-kind broker. good to see you, dolly. robert, always good to see you. thank you, diana. >> sure. >> see you later. break k as newspaper on smp stocks. josh lipton has the details. >> check out this stock, it's moving after-hours, laghman, logm. market cap's around 500 million. you saw that stock spike around 20%, right up around the close. it was then halted. logmien announced a victory. interesting too, maybe a small company, but it's got some big name backers. the fourth biggest shoulders is steven cohn's sac capital advisers. back to you guys. >> thank you very much, josh lipton there. spring is barely a week old. you could have fooled us here in the northeast. but already people are starting to talk about summer travel and heading ondecline to travel

sites. >> one of those sites investors are flocking to is orbitz, which has seen its stock soar more than 100%. the ceo, barney hartford, joins us next. >> also coming up, wait until you hear which company billionaire investor warren buffett will be taking an even bigger stake in. you're watching cnbc, first in business worldwide.

back to rally mode today. the s&p and the dow gain ground all session.

>> indeed, they did. the s&p oh, so very close to a new all-time high, but we didn't quite get there. bob pisani recaps the day's actions. >> complaints, complaints, everybody's wondering what happened to the rally. look at the s&p, we closed a point and a half away from an historic high. sell in may and go away, please, give me a break. did you see defense stocks today? boeing, multi-year high. aircraft components of the durable goods report was pretty decent. successful test flight of the 787. that all helped. other aerospace stocks were on the upside. the rebel declared bankruptcy in atlantic city. their competitor, that helped them. and also, rbc capital had a no doubt. they raised their estimates on a come of these companies. retailers, a little rough on retailers today. children's place, very bad guidance, but there's a big problem for the retailers. the weather has been unusually cold in the northeast and in the midwest and that's making it very difficult for people to transition or get them to

transition from buying winter clothes to spring clothes. nobody wants to buy it, so there's a lot of heavy markdowns on some of these early spring fashions. that's a little bit of a problem. we'll see if that changes in the next few days. guys, back to you. >> leave the sweaters on the shelves and whee'll buy them. >> to go over that easter dress. so the rocketing of orbitz's stock comes as airline stocks have been soaring this year, as global revenues have been projected at $671 billion this year with profits of $10.6 billion. >> so with the airlines flying high in an improving economy, online travel sites should be poised for growth. price waterhouse projects an increase in hotel reservations this year. joining us is orbitz's worldwide ceo, barney harford. he joins us exclusively from chicago. welcome, sir. a pleasure to have you here. >> thank you. >> we're all waiting for spring, very anxiously waiting for spring, what kind of a season do you think it's going to be? >> you know, we're certainly

seeing the cold and the winter and flocking to some of the warmer destinations that we offer. if you look at spring break travel, we're seeing some top destinations appearing, orlando, las vegas, cancun, and we're seeing the sun hold its clear appeal in the winter. >> that's for sure. you know, we marvel at your stock this year, up 110%, just year-to-date. and i'm thinking that you're attributing some of that, maybe most of it to your mobile, your capabilities -- people being able to access orbitz through mobile applications. i mean, that's become key for people wanting to make reservations, isn't it? >> absolutely. mobile is definitely one of the key growth initiatives that we've been investing in for the last couple of years. and it's been really pleasing to see how well that's performed. we recently talked about mobile representing 25%, one quarter of total hotel reservations we're making on orbitz.com.

on some days, it's as high as one third. that's because of the investments we've made in building really world class apps and mobile web capabilities. the orbitz iphone app was recently inducted into the apple hall of fame, one of only 48 apps will ever to be treated that way, out of 700,000 in total. so it's really paying off. >> talk to us about international growth. because it's better than a quarter percent of your business right now. where is most of the strength coming from? is it europe, is it asia? where it is? >> well, we have a couple of key businesses internationally. one of them is hotel club, which is based in sydney. it's an asia pacific focused hotel only operator which has a great loyalty program. the second is ebook, which is based in europe. over the course of the last four or five years, we've seen substantial diversification in the business towards international, 28% of our total business, up from 21% in 2009. but hotel club is really the standout over the course of the

last couple of quarters. we've seen real turnaround in that business. it had been more challenged historically. we've got a new leadership team there right now and we're really engaging in that high-growth asia pacific market. and obviously, there's a key mobile component to that as well. >> we wanted to get your talk on american airlines testing this new boarding procedure, that lets travelers without carry-on bags board first. do you think, one day, that we'll have to pay to use overhead storage space? i mean, how many more fees are we going to have to pay out there? pay out there? >> understanding exactly which direction the airlines are going to take is always challenging. there's always a new thing around the corner. what we're very focused often at orbitz is making it easier for consumers to get the best possible deal, to compare all of the players in the marketplace and understanding which one is the best possible option for them. airline tickets and hotels. >> do they balk when they have to pay an extra fee? >> there's less allegiance on the part of travelers to

different airlines for a lot of reasons. does that help your business necessarily? >> we certainly find that customers coming to our sites are looking for the best possible deal, and they're very price sensitive. so having great tools that allow them to make and evaluate different options is really, really critical. i think that's one of the key reasons why we've been able to see the substantial acceleration we're seeing in the volumes we're booking in that particular hotel business. >> mr. hartford, thanks for joining us today. getting something for nothing? who doesn't love that, right? >> i'd love that. warren buffett didn't do exactly that, but it was pretty close. his latest big score up next. zap technology.

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we all know warren buffett is well nope for his shrewd deals. now there's the latest in which he will become one of the goldman sachs largest shareholders, and it didn't cost him a thing when all was said and done. mary thompson with details. >> that's what you call sweet payback. in the depths of the financial crisis, buffett threw goldman a life line. getting warren to buy $5 billion of stock in the future. with goldman having purchased

the preferred stock, the two sides now amending the second part of that deal. the new agreement saving buffett from shelling out $5 billion in cash and saving goldman from having to issue existing stock and deluding exi diluting exist shareholders. in exchange for $43.5 million wards, buffett gets future shares. by striking $115 a share from gold man's average price this coming september and multiplying the difference by $43.5 million. so buffett's future will depend on goldman's price in the future. but as of yesterday, buffett would have received 9.2 million shares, putting him among goldman's top ten shareholders. sue, back to you. >> thank you, mary. so close to the s&p all time high. might have happened tomorrow. it's a short week. >> we'll come back with a preview of tomorrow's market.

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